Cryptocurrency hedge funds are investment funds which pool capital from investors into a group of assets focusing entirely, or partially, on cryptocurrencies or other decentralized digital assets. Funds are actively managed by experts or insider investors, who charge a fee for the analysis and selection of investment opportunities. A wide variety of both manual and automated strategies exist for diversifying and allocating funds; including restricting to high value market cap, hand picking specific assets, and much more. Investors following these strategies typically seek to reduce risk exposure to volatility in the value of any specific cryptocurrency on the market. In addition to hedge funds specializing exclusively in cryptocurrency assets, traditional hedge funds have increased their exposure to cryptocurrency assets.
Regulatory uncertainty
Cryptocurrency hedge funds invest in cryptoassets through a variety of mechanisms and instruments including initial coin offerings, pre-sales, SAFT, SAFTE, JCO and others. Most of these investments hold additional risk due to the regulatory uncertainty, especially from US regulators such as the SEC and CFTC. The SEC has released a number of recommendations and statements regarding ICOs and has taken action against securities some cryptoasset securities offerings such as Munchee Inc and Centra. The status of individual cryptocurrencies as a security, commodity, property, or some other status is still unclear. Despite this uncertainty, the number of cryptocurrency hedge funds increased significantly in 2017 as both crypto and traditional hedge funds produced high returns from cryptoassets compared to traditional assets.
Tokenization
Several cryptocurrency hedge funds have released tradable cryptocurrency tokens for example Blockchain Capital (BCAP), TaaS Fund (TAAS), and Blackmoon Crypto (BMC). A new class of decentralized asset management platform has emerged around the crowdsourcing or open sourcing of fund management with associated tokens. ICONOMI is developing an Open Fund Management Platform in which individuals can create an array of Digital Asset Arrays (DAAs) where others can invest. Numerai is building an AI and machine learning hedge fund platform for data scientists is building an AI and machine learning hedge fund platform for data scientists. Cindicator is also developing community and AI driven asset management fund.
List of cryptocurrency hedge funds
Nick Tomaino
1840 Green Street, Suite 2, San Francisco, CA, 94123 United States
http://www.1confirmation.com/
Alpha Bit
Liam Robertson
http://www.alphabit.fund/
ABC
Alphabet Coin Fund
https://alphabetcoinfund.com/
Astonaut Capital
Matt Dibb, Michael Gord
https://astronaut.capital/
Block View Capital
https://www.blockviewcapital.com/
P. Bart Stephens, W. Bradford Stephens
One Ferry Building, Suite, 255 San Francisco, CA 94111
http://blockchain.capital/
http://blockchain.capital/portfolio/
BCAP
Blocktown Capital
James Todaro, Joseph Todaro, John Todaro
Michigan, USA
Jason Whitmire, Ciarán O'Leary
Berlin, Germany
https://ipfs.io/ipfs/QmRum5N7k45EEirRSxHDoJXbqZrUzzteHznMS7asZz9Pgs/
https://ipfs.io/ipfs/QmRum5N7k45EEirRSxHDoJXbqZrUzzteHznMS7asZz9Pgs/#portfolio
Cambrian Asset Management
http://cambrianasset.com/
Crypto Fund AG
Jan Brzezek, Dr. Tobias Reichmuth, Mathias Maurer
28 Gotthardstrasse, Zug, Switzerland
https://cryptofundag.ch/en/
Timeline
The Multichain Asset Management Association is launched
The Multichain Asset Management Association (MAMA) is an international consortium of companies in the investing an asset management space in blockchain technology. The consortium is based in Zug, Switzerland, also known as crypto valley for its active approach to blockchain technologies.
Michael Arrington announces Arrington XRP Capital, a digital asset fund denominated in XRP
At the Consensus conference in New York, tech entrepreneur Michael Arrington announced Arrington XRP Capital, a one hundred million dollar cryptocurrency hedge fund that pays out investors in the digital currency XRP based on the digital asset offered by Ripple.
Cambrian Asset Management is launched
Cambrian was founded by Martin Green, Jay Posner, and Adam Jackson.
Polychain capital founded
Polychain capital was founded in September 2016 by the first employee at Coinbase Olaf Carlson-Wee.
MetaStable is launched
The MetaStable cryptocurrency hedge fund launched in September 2014 backed by Andreessen Horowitz, Sequoia Capital, Union Square Ventures, Founders Fund and Bessemer Venture Partners.
People
Further reading
‘Crypto’ hedge funds spring up in crowded field
Chloe Cornish, Lindsay Fortado, Richard Waters and Robin Wigglesworth
2 new cryptocurrency hedge funds pop up in Bay Area — one led by Michael Arrington
Cromwell Schubarth
A Crypto Fund King Says Bitcoin Will Be the Biggest Bubble Ever
Erik Schatzker
An AI Hedge Fund Created A New Currency To Make Wall Street Work Like Open Source
Cade Metz
Blackmoon to ICO its blockchain-based platform for tokenized investment funds
Mike Butcher
Blockchain Fund Launching Crypto ICO For 'Bloomberg-Like' Portfolio Management Platform
Roger Aitken
Data Sheet—How Top VCs Are Betting on Blockchain
Aaron Pressman and Robert Hackett
Hedge funds are cashing in on bitcoin mania — there are now more than 50 dedicated to cryptocurrencies
Frank Chaparro
Hedge Funds Tied to Cryptocurrencies Exploding, Over 70 in Pipeline
Jon Buck
Now More Than 120 Cryptocurrency Hedge Funds
Jon Buck
Tapping into Mental Assets of Individuals Propels Hybrid Intelligence to New Heights
Andrew Marshall
The Iconomi Burn — Crypto Buybacks
Sebastian Moonjava
There are now more than 120 hedge funds focused solely on bitcoin, digital currencies
Evelyn Cheng
U.S. Investment Firm With Long-Term View Launches Two Crypto-Currency Funds
Reuters
Why This Hedge Fund CEO Once 'Put Most Of My Meager Life Savings Into Bitcoin'
Laura Shin
Documentaries, videos and podcasts
CRYPTO COINS HEDGE FUND investment solution on the market cryptocurrency.
Oct 22, 2016
Hedge Fund Manager Mike Novogratz Bets $150M On Cryptocurrency
Oct 12, 2017
Token Summit I - Cryptocurrency Funds Are Coming, T Mitja Zagar, O Carlson-Wee, B Pierce, B Kelly
Jun 3, 2017
Companies